Research on Financial Risk Management in Coffee Industry under COVID-19

Abstract

Based on the huge impact of the COVID-19 outbreak on the world economy, this paper examines the financial analysis of the new coffee industry under the current pandemic. Here we take Starbucks, the representative of the coffee industry, as an example, adopts data collection method, comparison method, etc., and draws a conclusion that the coffee industry has gained development opportunities by taking advantage of its own characteristics in the context of the epidemic from the perspective of liquidity risk and financing capacity. This paper provides a new perspective for analysing the financial situation of the coffee industry and can provide some forecast for the choice of the development direction of the coffee industry under the epidemic situation.

How Coffee Entrepreneurs in Kerinci Impact Local Economic Empowerment and Social Impact of Local Communities in terms of Financial Capital, Entrepreneurial Orientation, Government Policy and Entrepreneurial Ecosystem

“…The financial performance of coffee firms is directly impacted by the availability of financial capital, including funding and infrastructure investment. According to (Rusdianto et al, 2018;Xinyue et al, 2022), financial capital and entrepreneurial success in the coffee business are positively correlated. Performance is directly correlated with entrepreneurial attitude, which is defined by inventiveness, a willingness to take risks, and proactiveness.…”

“…Performance is directly correlated with entrepreneurial attitude, which is defined by inventiveness, a willingness to take risks, and proactiveness. Strong entrepreneurial approach increases the likelihood of greater profitability and growth for coffee entrepreneurs (Xinyue et al, 2022).…”

Research on Financial Analysis and Development of Starbucks

“…Qu et al conducted an extensive investigation of wealth risk management in the coffee industry under the influence of COVID-19 using data collecting and comparing methods to examine Starbucks' financial statements from the perspectives of financing capacity and liquidity risk. The authors discovered that Starbucks maintained its dominance in the coffee retail chain despite the COVID-19 outbreak and that an easing of national epidemic prevention and control regulations was positively connected with a recovery in the company's international sales profitability [7]. Alkaabi et al evaluated Starbucks' financial status for the 2018-2019 fiscal year by performing a thorough review of the company's balance sheet and income statement, calculating financial ratios, and using data analysis.…”